Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-02-16

selves and combine their experiences, for the
purpose of fixing rates, in order that they may
be better protected in their business, and in or
der that the people who do business with them
may be better protected IN theirs. Now, sir,
want to give the reasons why there is a neces-
sity for cooperation in the matter OF the ineur-
ance companies. This necessity sir, arises upon
several grounds. In the first place. ii is an alb
solute impossibility for any one company to
have for various classes of risks sufficient expe-
rience, without interchanging combined expe-
rlence, TO adequately estimate the proper rate
on any given class OF risk. Without this, an in
crates upon good, substantial and sound basis;
without this, the person who engag S
with the insurance company takes a
perience, in the event of great con
fiagratiOn-which may come at any time
the person who is insured knows that his in
demnity ~ certain. But, sir. there are other
reasons why there should be combination
among insurance companies. One of the rea-
sons for the combination is the utter inability
of one company to maintain good rate. while
any appreeiable number of companies are free
TO underbid IL. Now that seems TO be the point
that the Senator from San Francisco lays 80
much stress upon. have heard him say that
what he wants is an open rate war Why, sir,
do you know what all open rate war means? 1t
means in every case, without an exception, the
survival o. the strongest and
THE UTTER DESTRUCTION OF THE WEAK.
Is there any argument against that? There is a
plain, commonsense proposition. | do not
blame the home companies OF California, who,
as the Senator so well says, represent only So
UO,OtA OF capital, while the foreign represent
500, ,0O00 000-l do not blame the home compa-
nics of California for pctitioning this Iegisla-
ture, as they have done, that this bill should
not become a law, because it means TO them, sir,
in the near future, the rates will be so low that
they must necessarily go out OF this business.
What do they say?
''It having come to our knowledge that rep
reservations have been made at Sacramento,
that the insurance compau: :es incorDoratef, nm,
der the laws of the State of California. are in
favor of the passage OF Senate bill SO, entitled
an AeS 70 ai,lelu oec.ioi o1o Oh ehe foitlcai
M SouS Ioia'in3 W insi i aicc We, rep
I tIa9ii1S LIE al y, sueli eoipaiies 80 oisaiil-eu
u ulluef aie lawS Oh the state OF
80; ,,,, - - t 80 ~ .ii - ~ "a ~, NJ
i e. loI TIE pssage ol saia Dill
anu VIC arc unliiliiiousiy oppoSel thereto.
LISTEN TO THE NAMES
from San Frencisco N has alpesdv sail that tbsy
are men representing eanitaI while he
is so anxions 10 he known as the renre-
sentative of the labor element mon this
hoor I saw thar the labor elar,anf com :
exist unless You protect the capital of
this State Listen IN the names renresenting
capital that are appended TO this petition The
Firemen's Fund Insurance COMPANY. ID. ]. Sta-
ples. President: William ]. duncan. Secretary.
tTnion Insuranee Comnanv David Touchard
President. q Ii Bailey Secretary Commercial
Insurance. COMPANY. John III. Wise President:
G. A. Iaton. Secretary. Oakland Home Insnr.
anee Companv ", ID Homes President Sonthern
C,liGnrnia InSnranca Connnanv Iobn p Hall
man Manaaer. state Investment insurance
Cnmnsny / Rrvant President. G. n (,ush
inc SScrntorv Home iIutnaI Insprance re- 1;nr1-
pany J. +. koughton. President; c. r. story.
Secretary. Caliiorr iii Insurance Company; sun
Insurance Company, and Anglo-Neyada Assur-
ancc Company Now. sir, / say that | don t
blame the home companies for hot desiring the
= l.
them, in the very nature of things, out of the
business Why, sir,
rr,p vpp1, ,pct-.,r
-.
nroves his He saws the ioreiep eomnanies
represent four hundred millions of capital.
They could live within the State for five or ten
years at an annual loss and il would not be Il
drop in the bccket. Do you suppose the home
insurance companies could stand that
Most assuredly not An open-rate war,
Mr.. President and Senators, is not
in the interest of the capital of
California, though it may be to the capital OF
foreign insurance companies. Now, sir, there
are other reasons why there should be insurance
combinations. AsSo lated effort is necessary TO
keen out undue competition in the remunera-
tions of agents, solicitors and brokers: for in
the absence of such, il is well Unknown that the
excessive remuneration that is paid must
sooner or later be borne by the public who pur-
chase the indemnity. Right here | want to say
that was very much astonished to hear the
Senator from san Francisco VINO, as II Is we'll
MI, w , liz 40 'ie o,,a Ui tno @ itei
S2.' VI siG b cst s Co. tot =,
not trst mentioned itNvet one If his tirst nrnno
s;t;ons r,s; ;s -'-' '''7' f-'p0
o<r op THE pr,soSs ,rr,x
He wants 10 nave TINS zone away Win; that ne
may do MS business himself with the lnsurJnct
company without the ald OF a broker am
more iTlenuiSsto captain Burns. am WILING
to let Captain Burns I'VE, ana am wiling 1t
should be broker, ana II l haa any business IL
that llne Woulu not opJect 10 giving IL 10 cap
tain Burns and letting HIM do my business ior
me, but 1t seems that the senator from San
Francisco wishes to do MS business himself,
IN ORDER TO OBTAIN A REBATE
u.h, cir tbora is No or,,r,o,+ in ,bo.. a.,
hI?,,i lii hnS i1,as reba, ~ ,h .ii'
@ ~ f ar,,I " 'I f,i
- =; 80, slJo,' that to ifarsS,, -, ~ 80. ~
tn he wholesale hons nr any laro Arm c,s ,,e
rIst ,,non What he bnvs. the niddIe ~ rnr
- tbe rehata II Won hny a case 81 ,,,i,,o ~
e.s the teD.e ,f ~ you pu t Gasf VI M miIe Hot
tbrn',gS hroter ten ehances TO ono %" be eu vii
n,ie snmetbintr on II tor Won aud tho cboncn.
80 10 Vii Inal-n ro,, nov, 'fa- !, NoI1 -
ty,ora ic onntbnr tbi,,r in Connection ,vith RI
msttnr tht 6esire to imnress mon the nnind,
ot those nrasnnt-that H., association of finder
,rr;tors boTo For their ,,hioct M. avtcr,;o,, -,
innreasa or roteS hIt the;y eonni7oton so IL .,
nacb class Of insurance may near lie i,,St ~
den and snch a rate only as the combined ey.
perience of many will indicate as the
PROPER sIANDAhD foK SAFE UNDERWRITING.
l want to call the attention of the Senate &c
the remarks which the Senator from Napa made
upon that very question lie mentions several
cases from his Gown little city, as he calls it, in
which he says since the com pact has gone into
force the rates have increased Ii is right that il
should be so-it is the very reason why this com.
pact should exist end this is the very reason
why this Senate should not pass this law because
each class of risks should bear its own burden
You take your little Beehive. Senator from
Napa. You say that under the old arrange
ment they paid 81 %. Now they have to pay
81 40. What is that Beehive? / am told it is
considered an undesirable risk. and it is not
right that desirable risk should be Obliged tC
nay for an undesirable risk 1t is not right that
the owner of the dwelling house three blocks
away should pay the risk th7t the Beehive
| ought to pay. | understand this beehive is a
sort of an T. X J.. establishment. and that II
contains a cheap class of goods of all kinds
Senator Gesford-It is a large mercantile
house
Senator Wilson-Does not it contain chear
class OF goods, ana docs IT not contain many
ullierelit quHlltIes Iit oi sootis Us
,y?i CO 81, ~ Io, =; .,.,.,
81 " y, ~, - III - b,t :. - ~;
II II 10 nov uil ~ h ~ !. -
nets nsr 70 ~ P,0e w 'lns! NJ a So
ma VI no 1r -, n H m
,a f ,ot III '0' ~ ~ az
s.D NIL 10 - So, i'C % - i'
:. o5 +Po ,,ort ,1occ - arn,bor h3,ai -
rai-oi ,rn,, 90 IN IN - ~ Now The axne,ie,,ca
of fire Insurance companies thronchout
this country is TO the effect that hotel must
necessarily DC hazardous risk There are hres IN
every room, usually gas IN every place, and
there is greet ttprAge-rooIn uncerneath or on
top OF a hotei. Ihere is an elevator Schute or q